Completing and sending required income tax paperwork to the IRS can be a complicated and sometimes costly process. To get it done, you may use tax software companies such as TaxAct or Turbo Tax, hire a tax preparer at a company like H&R Block, or work with a certified public accountant.
But now some U.S. residents can use the IRS Direct File program, which is currently available in 25 states. It gives taxpayers the ability to file their tax returns online without a middleman and at no charge.
[Related:How to Find a Reputable Tax Preparer Near You]
Here’s how Direct File works and who it may benefit.
What Is Direct File?
The IRS developed Direct File for relatively simple tax situations. It enables qualifying taxpayers to fill out and submit their tax returns straight to the IRS. The intention is to streamline what has been, for many people, an overly complex and sometimes expensive process.
Direct File guides you through the required tax forms like other tax preparation software. Each step you take will prompt a calculation that shows the reason behind it so you understand what is happening to lower or increase your tax obligation as you go along.
If at any point in the process you have questions, Direct File will give you access to special IRS customer service representatives for live support through the program’s chat feature.
At the end you’ll receive a calculation of your refund or tax owed. Because you’re working with the IRS, your return is already with the agency, and no fee will be attached.
Direct File is designed to be easy and secure. You can safely pause and then return to the forms at any time. As long as you finish filing before the April deadline, you’re good to go.
In the event you’re owed a refund and choose the direct deposit option, you should get the money in fewer than 21 days. You can also use the IRS Where’s My Refund tool to track the status of your refund.
[Read: When You Should (and Shouldn’t) Worry if Your Tax Refund Is Delayed.]
Eligible States for Direct File
Direct File is still in its pilot phase, so it’s not currently available everywhere in the U.S. For tax year 2025, qualifying residents of the following 25 states can use the program:
— Alaska
— Arizona
— California
— Connecticut
— Florida
— Idaho
— Illinois
— Kansas
— Maine
— Maryland
— Massachusetts
— Nevada
— New Hampshire
— New Jersey
— New Mexico
— New York
— North Carolina
— Oregon
— Pennsylvania
— South Dakota
— Tennessee
— Texas
— Washington State
— Wisconsin
— Wyoming
Not all of these states impose state income taxes, but if you live in one that does you’ll be directed to a different tax filing program after you’ve completed filing your federal return.
[Related:9 States With No Income Tax]
Who Can Use Direct File
There are some restrictions on who can use Direct File. If your tax situation is simple and you pay taxes in the pilot program states, you may use it if you meet certain qualifiers. According to the IRS, you can use Direct File if your income types are any of the following:
— W-2 wage income
— Social Security income
— Unemployment compensation
— Interest income
— Retirement income
— 1099-MISC for Alaska residents reporting the Alaska Permanent Fund Dividend
At this time, you cannot use the program if you have earned self-employment, rental or business income.
There are different requisites for each state, too, so check what they are for yours. For example, if you’re an Alaska resident, you may use Direct File as long as you lived in that state and earned all of your income there for all of 2024. But in Texas, which has the same residency and income qualifications, you can’t use the program if you use the married filing jointly tax status.
In Kansas, you must have lived and earned all of your income in that state for all of 2024, filed there for the past three years and plan to use the same filing status for your federal and state tax returns.
There are also general income thresholds. You can’t use Direct File in any state if:
— Your wages exceed $200,000 ($168,600 if you had more than one employer)
— You file as married filing jointly, and your spouse’s wages are more than $200,000 ($168,600 if your spouse had more than one employer)
— You file as married filing jointly, and you and your spouse’s wages are more than $250,000
— You file as married filing separately, and your wages are more than $125,000
[Read: Married Couples: Is It Better to File Taxes Jointly or Separately?]
Direct File also allows you to:
— Claim the standard deduction
— Claim deductions for health savings account contributions, educator expenses and student loan interest
You can also claim the following credits:
— Earned income tax credit
— Child tax credit
— Credit for other dependents
— Child and dependent care credit
— Premium tax credit for marketplace health insurance coverage
— Credit for the elderly or disabled
— Retirement savings contributions credit
How to Access Direct File
First, visit directfile.irs.gov to find out if you’re eligible. If you can use Direct File, the IRS will verify your identity through ID.me before you can begin. Then you’ll provide your tax information directly to the IRS, with no third party involved.
In the event you can’t use the program, the IRS will direct you to Free File on IRS.gov, which partners with a number of private tax software companies. If your adjusted gross income was $84,000 or less you can file through one of the platforms at no charge.
Should You Use Direct File?
Completing your tax return and filing it at no additional cost is an overall positive, says Paul Miller, a certified public accountant and founder of the New York-based accounting firm Miller & Company.
“Everyone should be given the right to have their returns done for free,” Miller says. “I’m a believer that the government should help the people.”
However, Direct File may not be appropriate for everyone, even if you qualify.
“There are still a lot of questions about the program, like what happens if you forget to get a credit,” Miller says. “If you just have a W-2 and enter everything correctly, you should be fine, but there are all kinds of nuances to a tax return.”
If you prefer one-on-one assistance from a professional, try to reach a tax preparer now or get an extension if you can’t, Miller says. Money is on the table, and you don’t want to lose any of it.
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These 25 States Can Now File Taxes Directly With the IRS originally appeared on usnews.com
Update 04/08/25: This story was published at an earlier date and has been updated with new information.
